“I want to say something to the prime minister of this country: the proposals presented for housing, namely this concept of average rent of 2,300 euros, will cause yet another spiral increase in rental costs,” stated José Luís Carneiro at a rally supporting João Paulo Correia’s (PS) candidacy for Vila Nova de Gaia (Porto district).
Carneiro warned that this would “severely harm middle-class families, particularly younger people in our country,” and highlighted a new “liberalization” of rents.
“It is a new way to liberalize rents. We previously had a method with the infamous rent liberalization law – the ‘Cristas law’,” he noted, referring to former minister Assunção Cristas, “and now we have another way to liberalize rents, asserting they can reach the average rent concept of 2,300 euros.”
He recalled that “Portugal was one of the OECD countries where housing costs rose the most in the second quarter of this year, with a rise of over 17%.”
Later, addressing journalists, the PS secretary-general stated that housing in Portugal “could become an explosive factor” in collective life.
“Housing costs have escalated sharply in Portugal since this government took office, due to the policies it adopted,” he observed.
Carneiro emphasized that “guarantees for young people are essential,” adding that “it is necessary for the state to construct housing at an accelerated pace, involving all players: civil builders, private agents, cooperatives, associations, IHRU [Institute for Housing and Urban Rehabilitation], and for the state to strengthen financial means so that municipalities can build more housing.”
“If we fail to place more housing on the market, focusing only on supply, housing costs will rise exponentially, leading to explosive effects in cities across the country,” warned the socialist leader.
On Friday, Carneiro expressed surprise that the government considered the average Portuguese rent to be 2,300 euros, remarking that this reflects a lack of understanding of the country.
On Thursday, at the end of the Council of Ministers, Luís Montenegro announced that the government would reduce the VAT rate to 6% for construction of homes for sale up to 648,000 euros, or if they are for rent, with rents up to 2,300 euros – a fiscal regime to remain in effect until 2029.
Conversely, the minimum VAT rate of 6% will also apply to “construction and rehabilitation of buildings” for rentals up to 2,300 euros.
